Insurance Funds

Overview

The Insurance Funds are funded through annual appropriations from the Operations and Maintenance Fund Budget. The District has established four (4) Insurance Funds as part of its sewer rate stabilization strategy. Background information and current year budget highlights of the insurance funds are discussed on the followingpages.

Insurance Funds (continued)

Self-funded Employee Medical Program

The District offers medical, dental, and life insurance to all employees. Employees may purchase optional dependent coverage through payroll deduction. These benefits are funded by a combination of District contributions as well as commercial insurance premiums.

The District has established a self-insured group health and dental insurance program, with premiums paid to commercialcarriersforstop-lossandaggregatecoveragetolimittheamountofrisktheDistrictwillassume.A third-party administrator processes all claims, and a commercial healthcare provider network is retained to negotiatefees and authorize payments.Prescription benefits areadministeredthroughaprivatecontractor.

Employees pay a nominal amount for individual medical and dental coverage and pay approximately 30% to 36%ofthecostfordependentcoverage.Afteremployeepaymentofspecifieddeductiblesandco-paymentsfor medical and dental services, the Plan covers the remaining authorized charges in total. The budget for FY2024 includes an employercontribution increaseof6.5%to cover anticipatedexpenditures needs.

FY2024Self-fundedEmployeeMedicalProgramBudget

Insurance Funds (continued)

Post-Employment Insurance

The District has established a post-employment insurance fund to accumulate funds now, which will reduce futureoperationalexpenditureswhenretireesbegintakingadvantageofthisbenefit.TheDistrictwillannually fund the equivalent of the annual required contribution less expenses as determined by an actuarial study as required by GASB 75. The accumulated funds will only be used for post-employment insurance. However, the District’s Board does reserve the rightto use thereservefunds forunforeseen emergencies.FY2024fundingof $283,000 represents a 1.3% of total operations. As of July 2022, the District has twenty-one (21) eligible participants in thepost-employmentinsurance plan.

FY2024Post-EmploymentInsuranceBudget

Insurance Funds (continued)

Worker's Compensation

The District established a separate insurance fund for worker’s compensation, which will facilitate allocation of costs to respective department, division, and section budgets. The Safety Officer acts as liaison with the insurance carrier to administer claims and to minimize future claims by providing training and equipment designedto preventinjuries.Thebudget for FY2024 does notincludean increasein contributions.

FY2024Worker’sCompensationFinancialPlan

Insurance Funds (continued)

General Liability

TheDistrict’sgeneralliabilityinsurancefundwasestablishedto allocateinsurancecosts toalldepartments, divisions, and sectional budgets, provide funds for payment of no-fault sewer back-ups and establish reserves to offset future unanticipated increases in sewer back-up liabilities in excess of budgeted amounts. Thebudget for FY2024does notincludean increasein contributions..

FY2024GeneralLiabilityFinancialPlan